investment strategies for the world's largest institutional investors
The results of the CIO Sentiment Survey broken down into investment impact and themes
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As a result of stretched internal teams and the talent shortage, CIOs are increasingly leaning on support networks and seeking strategic partners as they contend with these operational challenges.
An increasing proportion are using investment consultants for both investment decisions and manager research. This has continued over the past three years, and looks likely to continue due to projections of increased usage as well.
Are You Making Changes to Your Use of Internal Investment vs. Use of Third Party Managers?
% of Respondents
The ongoing shift towards internal investment continued, with 75 per cent of respondents saying they plan to decrease or retain the number of managers on their roster–a figure that is 8 per cent higher than in 2022. Only one single respondent is shifting internally managed asset classes to third-party managers, while 26 per cent of respondents said they are moving management of select asset classes in-house.
CIOs are expecting elevated service from their remaining asset manager partners, with 71 per cent collaborating with investment managers to increase transparency and develop best practices with respect to ESG initiatives. Another area most respondents have greater expectations from their asset managers is in thought leadership, with a significant number wanting greater personalisation and customisation from managers in this area.
How Have Digital Advancements Impacted Your Fund Manager Due Diligence Process?
% of respondents
Cloherty said some asset owners have complained of generic marketing materials bombarding their inboxes, and are seeking more thoughtful insights.
“One comment we’ve heard is it doesn’t matter what content is sent, but it has to be novel and aligned with what one organisation can do realistically,” Cloherty said. “For example, if you are an equity manager, don’t give me views on the interest rate environment and inflation shifts, and stay consistent with what your firm knows.”
More than half of respondents (58 per cent) say it is a top priority for them that they have a dedicated relationship manager. A similar number say they are reviewing investment fees and renegotiating these with managers.
Current vs. Planned Usage of Investment Consultants
% of Respondents, Current and In 3 Years, 2021-2023
In 3 years
2023 CIO SENTIMENT SURVEY